Row over MOT charges stalls exports

By Our Staff Reporter

THIRUVANANTHAPURAM, OCT. 9. The airlifting of tonnes of fresh fruits, vegetables and other commodities to the Gulf countries came to a standstill today following a dispute between exporters and the Customs over the payment of Merchant Overtime (MOT) charges for handling cargo at the Air Cargo terminal during odd hours.

As a result, 44 metric tonnes of highly perishable cargo could not be lifted by the airlines to various Gulf destinations such as the United Arab Emirates, Saudi Arabia, Kuwait and Muscat. The estimated loss of revenue and foreign exchange to the airlines and the shippers has been put at Rs. 25 lakhs.

Airport sources said that Customs officials had asked the exporters who arrived with the perishable items around 2 a.m. today to fill the form seeking their service in the Air Cargo terminal during odd hours. As per a recent Government regulation, those utilising the service of a Customs official between 10 p.m and 8 a.m will have to give an undertaking to pay MOT charges.

The exporters maintained that they would not pay the MOT as the premier airport had become functional round-the-clock from September last year. The Board of Airline Representatives (BAR), a forum of the operating airlines in the State capital, has also taken a decision not to pay the MOT charges.

According to exporters, the vehicles were not allowed entry to the Air Cargo terminal though they had fulfilled all pre-shipment modalities, including payment of Customs cess, on Monday.

Among the nine operating airlines to the capital city, including Air India and Indian Airlines, Gulf Air managed to airlift seven to eight metric tonnes of cargo. BAR sources said that the General Sales Agent of the foreign airline paid the MOT charges and hence they were able to airlift the cargo.

The Agricultural Products and Processed Foods Exporters Association (APPEXA) had taken up the issue with the Appellate Authority - the Commissioner of Customs and Central Excise, Kochi on October 3. The Commissioner, Mr. T. Jayaraman, heard the complaint and the matter is pending disposal with him.

``As the matter is pending with the appellate authority, the Customs should have maintained status quo rather than collecting MOT charges,'' according to the APPEXA secretary, Mr. Dil Koshy.

The Kerala Sub-Committee of the BAR, in its emergency meeting held here and attended by all the operating airlines, expressed concern over the stalemate which had come at a time when the aviation industry was facing a major crisis the world over.

When contacted, the Additional Commissioner of Customs and Central Excise, Mr. B. Syed Mohammed, told The Hindu that the Air Cargo terminal was not functioning round-the-clock like the airport. The practice of paying MOT charges by those seeking the service of the Customs Officer was being followed in other air cargo complexes in the country, he added.

The Commissioner assured the exporters that he would take a decision on their complaint within a week, pending which, the export of perishables from the Air Cargo terminal would resume tomorrow.

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